Rock-solid rumours coming from Japan say that the Tokyo firm is set to warn investors that it will write off a loss of ¥100 billion, or almost half a billion pounds, on HD DVD this financial year.

Losses doubled

Toshiba still expects full-year profits of ¥250 billion (£1.2 billion). But the fact that it's a public company with shareholders expecting far better numbers makes the larger-than-forecast HD DVD loss significant.

Thursday trading in Tokyo currently has Toshiba stock down almost 3 per cent compared to yesterday. The company had expected to lose ¥50 billion on HD DVD this year even if it had stayed in the market.